HSBC Blocks Australian Cryptocurrency Exchanges to Protect Customers
Banking giant HSBC has implemented a new policy to block all cryptocurrency exchanges in Australia due to the increasing number of scams in the industry. The move comes as part of the bank’s efforts to safeguard its customers from fraudulent activities.
Protecting Customers from Fraud
Effective July 24, HSBC started blocking all customer payments for cryptocurrency transactions. In an official announcement on their website, the bank stated that the decision was made to protect customers from the growing threat of scams.
We’re making these changes to protect our customers in response to an increase in scams. We continually invest in our security capabilities and enhance our systems to help protect our customers from evolving threats.
Customers who use cryptocurrency exchanges were notified of the new security measure through email, urging them to explore alternative payment options for their transactions. Any transactions aimed at cryptocurrency exchanges, including credit and debit card payments, are now automatically blocked by the bank.
However, the bank clarified that payments through cryptocurrency exchanges are still permitted, ensuring customers have access to legitimate trading platforms.
Australia Cracks Down on Cryptocurrencies
HSBC’s decision follows a trend among major Australian banks that have also restricted cryptocurrency activities in the country. Last year, other top banks in Australia, such as Commonwealth Bank, National Australia Bank, Westpac, and ANZ, collectively blocked cryptocurrency payments.
A report from Westpac revealed that investment scams were responsible for a significant portion of scam-related customer losses, with a notable percentage involving transfers to cryptocurrency exchanges.
Australian regulators have not only targeted cryptocurrency exchanges but have also cracked down on the use of cryptocurrencies in online gambling. Additionally, the Australian Securities and Investments Commission has been actively pursuing unregistered cryptocurrency entities that may be operating as securities.
In conclusion, the banking industry in Australia is tightening its regulations around cryptocurrencies to mitigate the risks associated with fraud and illegal activities. HSBC’s decision to block cryptocurrency exchanges is aligned with the broader effort to protect customers from potential scams and ensure the integrity of financial transactions in the digital currency space.
The post HSBC blocks Australian cryptocurrency exchange to protect customers appeared first on Invezz.
